Personal Mastery

Personal Mastery: Getting What You Want1ObjectivesShare an approach, guidelines, and references

Imprint/Reinforce that Financial Planning is the base of the pyramid

Emphasize that Planning and Daily Practice/ Discipline is essential to controlling your time and getting what you want

2OverviewApproach to Financial Planning

Overview of Personal Mastery

Finding a Tool for Planning3Paralysis by Analysis

The way to think about identifying the appropriate point to make decisions is to recognize that the value of information diminishes over time, so at some point the cost of collecting additional information outweighs the cost of collecting it to minimize risk. Identify that point and you will have determined the appropriate moment to make a decision.

4Accepting Uncertainty and Change

The Way that is the Way is the Ever Changing Way.

The Dao that can be named is not the true Dao.

The Caveat: things change over time, but dont let that stop you from planning accordingly.

5Abraham MaslowPsychologist who was studied healthy people, not the illA Theory of Human MotivationBased Hierarchy on study of healthy people he knew who clearly met the standard of self-actualization. these all had similar personality traits.Reality-Centered: able to differentiate what was fraudulent from what was genuineProblem-Centered: they treated lifes difficulties as problems that demanded solutionsWere comfortable being alone and had healthy personal relationships, with only a few close friends and family rather than a large number of shallow relationships

6Maslow's Hierarchy of Needs

Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation.[2] Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans.Self-actualizationMain article: Self-actualizationWhat a man can be, he must be.[8] This forms the basis of the perceived need for self-actualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming.[9] This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions.[10] As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs.

7Financial Planning = Building the Base of your Pyramid

8Timelines and UncertaintyIncome variabilityTimeUncertainty1052030Most PeopleCC9Financial Planning: CC BenefitsSignificant Security/Certainty:You know what you are going to make and when you will make it.Security in the long term pay and pensionInsurance: SGLI, Disability, Life

You are not in it for the money.

10Financial Planning Step 1You have to start before you can finishKnow what you makeKnow what you spendIdentify what your essentials areIf cost of essentials > what you make need to look at those essentials again

11Step 2 Make a Savings PlanSet GoalsRetirementMajor Purchases (Car, Home, Education, Family)Rainy Day FunFlex fund (Vacations, Donations, Events, Gifts)Set up accounts for eachTSP/RothMoney Market, 529,SavingsChecking12Step 3 Educate YourselfVocabularyLiquidity, Present Value, Dollar Cost AveragingRetirement Funds TSP, Roth, Expense RatiosInsurance Disability, Life, Term Life, DisasterTax PlanningDeductibles, Employee Business ExpensesGet Help!USAA, Credit Union, AMEX, Your Bank13Step 4 - PracticeBe Disciplined pay yourself first in orderRetirement Purchases Rainy Day - FlexRecord it Start daily/weekly tracking your spending habitsDecrease as you get better,/more aware, of your habitsFigure out improvements Skipping Starbucks, saving on car usage (gas), bringing lunchCheck In/ReassessAnnually with accountsMajor Life changes or expected changesSpouses, parenting, caregiving, health, acts of GodBe Careful about commitments

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Have to take care of your base before you can get to what you want15Time is Money, Efficiency is Life

16Steven Covey

Sold more than 15 million copies Extended series of 7 Habits Established Covey Leadership Center, merged with Franklin Quest in 1997 to form FranklinCovey Mission Statement: We enable greatness in people and organizations everywhere.

17Steven Coveys Seven HabitsBe ProactiveBegin with the End in MindPut First Things FirstThink Win-WinSeek First to Understand, then to be UnderstoodSynergizeSharpen the SawPhysical, Mental, Spiritual and Emotional Wellness18Hyrum W. Smith

Founded Franklin Quest in 1981, merged with Covey in 1997

When your daily activities are in concert with your highest priorities, you have a credible claim to inner peace.19Hyrum Smiths Ten Natural LawsManaging Your TimeManaging Your LifeLaw 1: You control your life by controlling your timeLaw 2: your governing values are the foundation of personal fulfillment.Law 3: When your daily activities reflect your governing values, you experience inner peace.Law 4: To reach any significant goal, you must leave your comfort zone.Law 5: Daily planning leverages time through increased focus.Law 6: Your behavior is a reflection of what you truly believe.Law 7: You satisfy needs when your beliefs are in line with reality.Law 8: Negative behaviors are overcome by changing incorrect beliefs.Law 9: Your self-esteem must ultimately come from within.Law 10: Give more and youll have more.20W. Edwards Deming

StatisticianBest known for his work in JapanRecognized as a hero in Japan for his impact on Japanese manufacturing and business during reconstruction from WWIIStatistical Process Control emphasisSystem of Profound KnowledgeThe first step is transformation of the individual. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.21Demings 14 Points1."Create constancy of purpose towards improvement".

2."Adopt the new philosophy.

3."Cease dependence on inspection.

4."Move towards a single supplier for any one item."

5."Improve constantly and forever".

6."Institute training on the job".

7."Institute leadership".

8."Drive out fear".

9."Break down barriers between departments".

10."Eliminate slogans".

11."Eliminate management by objectives".

12."Remove barriers to pride of workmanship".

13."Institute education and self-improvement".

14."The transformation is everyone's job".Replace short-term reaction with long-term planning. The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so. If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. Multiple suppliers mean variation between feedstocks. Constantly strive to reduce variation. If people are inadequately trained, they will not all work the same way, and this will introduce variation. Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based. Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organisation's best interests. Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs. Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.Deming saw production targets as encouraging the delivery of poor-quality goods. Many of the other problems outlined reduce worker satisfaction.

22Peter Senge

Aerospace EngineerDirector of MIT Center for Organizational LearningLearning Organizations are those where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.23Peter Senges Fifth DisciplineThe Art and Practice of Learning OrganizationsFive ElementsPersonal MasteryShared VisionTeam LearningMental ModelsSystems Thinking

24Peter Senges Fifth DisciplineThe Art and Practice of Learning OrganizationsPersonal Mastery three steps:Articulate a personal visionIts not what the vision is, its what the vision does.See current reality clearlyChoose: make a commitment to creating the results you want. This takes courage. Takes a commitment of time and process.25The RunAround DilemmaBecause we dont know what is really important to us, everything seems important.Because everything seems important, we have to do everything.Other people, unfortunately, see us as doing everything, so they expect us to do everything.Doing everything keeps us so busy, we dont have time to think about what is really important to us. 26Planning Road MapThe Time Matrix Prioritizing and Performing

The Productivity Pyramid

Having a Planning System

27Important and UrgentImportant adj: of much import, carrying with it serious consequences; weighty, momentous, grave, and significantUrgent adj: presisng, compelling; calling for or demanding immediate action; anything characterized by urgency

Oxford English Dictionary28The Time MatrixCrisesPressing ProblemsDeadline-driven projects, meetings, reportsPreparationPreventionPlanning Relationship buildingRe-creationValues clarificationNeedless interruptionsUnnecessary reportsUnimportant meetings, phone calls, mail, emailOther peoples minor issuesTrivia, busyworkIrrelevant phone calls, mail, e-mailTime-wastersEscape activitiesExcessive TV, Internet, relaxationUrgentNot UrgentImportantNot ImportantIIIIIIIV29The Time MatrixUrgentNot UrgentImportantNot ImportantDeceptionNecessityProductivity and BalanceWaste and Excess30Live North of The LineUrgentNot UrgentImportantNot ImportantDeceptionNecessityProductivity and BalanceWaste and ExcessThe Line31To Get What you Want.

.you have to Know What you Want.

(What determines what is Urgent and Important to YOU?)32The Productivity PyramidPlanDailyPlan WeeklySet GoalsIdentify Values33The Productivity Pyramid Identify ValuesGoverning Values are:Standards, Ideals, Highest PrioritiesSample Values:AdventureFreedomLoyaltyBalanceGenerosityPatienceBeautyGratitudeCompassionHealthQualityCourageHonestyRespectCreativityHumorResponsibilityFaithIntegrityTeamworkProfessionalismFitnessLeadershipWisdom

Have you ever considered the strength of your relationships as a measure of your success?

34Relationships are the base for success

35Productivity Pyramid Sample RolesAdministratorCoachGrandparentSisterArchitectCompanionInventorSonArtistConsultantManagerSpouseBrotherCounselorMusicianCEOSupervisorCaregiverDaughterEditorNeighborTeacherParentDesignerCFODirectorPartnerTrainerChallengerPeacemakerVolunteerWriterCitizenFriendSalespersonReporter

36The Productivity Pyramid Identify ValuesSelect Values, then right Clarifying Statement of what those values mean to youExample:Value: TeamworkClarifying Statement: I work collaboratively with others and positively contribute in a way that will help my team move forward.Value:CreativityClarifying Statement: I reflect my unique capabilities while being inventive and independent in the things I choose to do.37Once you Know What you Want

.. You have to have a plan to get there.38The Productivity PyramidPlanDailyPlan WeeklySet GoalsIdentify Values39The Productivity Pyramid Set GoalsSMART(ER) GoalsSpecific, Measurable, Attainable, Relevant, Timely(Exciting, Recorded)Other adjectives: Stimulating, Appropriate, Realistic, MotivatingTypes of GoalsAlign with your Values/Mission/RolesGoal-Setting TipsWrite it down.Give it a deadline.Break it down into doable chunks.Commit.

40Once you have a plan..

.. You have to work the plan.41The Productivity PyramidPlanDailyPlan WeeklySet GoalsIdentify Values42The Productivity Pyramid Plan WeeklyThree Steps to Weekly Planning:Review roles.Think of your goals in terms of your roles.Choose Big Rocks.Come from: Conscience. Values. Goals. Key Projects.Can be:Tasks. Appointments. Areas of Focus. Schedule the Week.Block Appts for time required.Assign To-dos to specific days.TipsWhen?Before the week begins.Where?Someplace quiet.How Long?20-30 minutes43The Productivity PyramidPlanDailyPlan WeeklySet GoalsIdentify Values44The Productivity Pyramid Plan DailyThree Steps to Daily Planning.Check Todays Appointments.Make a REALISTIC list.Every day my goal is to complete everything on my to do list for this day.Prioritize (ABC,123)A: Must be done, vital, life or relationship sustaining.B: Normal, RoutineC: Low, optional, trivial.TipsWhen? Morning or evening of previous day.Where? Someplace quiet.How Long? 5-10 minutes.45My Planning SystemWrite out your Values, prioritize them, establish goals to achieve them, then establish your roles and the tasks/to-dos to accomplish those goals.Using OutlookTasks vs. To DoCreate Folder for Goals break down into doable steps, set time targetsDaily To-DoAppointmentsCommitments of time where you Physically have to be somewhereAssign times to do Daily To-dos during your Windows of OpportunityNotesStart each Note with the date will automatically title it

46Using Outlook: Set Goals in TasksTask Title = GoalSet out Plan to meet Goal stepsSet Dates for completing stepsCan use No Date for Big RocksReview Task List each week to identify priorities and planning the week/daysPut Weekly Planning and Daily Planning as recurring task accordinglyUse Daily Planning to enter daily task (To-Do) itemsUse Categories to color prioritize47Using Outlook: Using Appointments to Control your TimeSet Appts where you Physically have to be somewhereUse Windows of Opportunity to do Daily To-DosCan move Task into CalendarTo-Dos that arent done will move to the next day automatically (should only be low priority items)

48Using Outlook: Use Notes to keep record of appts and action itemsTitle system: year-mo-date, i.e. 130429 for dateChronologic listingList action items and dates from your meetingsTake time to enter action items into your To-Do list49Summary of StepsTake Care of your health.Practice financial planning to take care of the base of your pyramid.Figure out what you want. Set goals and timelines.Identify your planning method and tools.Practice diligently.Accept the unexpected.

50The hard part about Getting What You Want is.

. Knowing what you want.

51Questions/Insights?

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